#1 Dating Site for Successful Singles and Admirers
Millionaire Blogs > MillionDollarBab's blogs > The Debt Ceiling
The Debt Ceiling Sort by:
Author
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Wed, Sep 18, 2013 08:39

Watching CNBC, I saw Jim Cramer emote about the debt ceiling, and its effect on the market.  "When Boehner speaks, someone needs to pull the plug on the microphone."  

 

I noticed the market was down today, mostly because of the Fed meeting.  How could the knowledge that the market would be down on a given day be turned into money?  Hmmm...

 

Then our President made an appearance on the tiny screen.  There's the real money, figuring out when the President will speak.  Every time he speaks during market hours, the market goes down.  

 

He was saying that the Republicans are extorting a position out of him by using threats of not raising the debt ceiling and that in a few days the situation will become epic in proportions and crisis crisis crisis.  

 

Yeah yeah.  It reminds me of reading that the hospital was closed for a day, and the mortality rate went down.  

 

What will happen?  The same thing that happened last time.  Our President will select the most aggravating things to shut down, like sending all the people that do search and seizure at the airport home so people can't get on the plane, which obviously would blow up if they did.  A whole lot of nothing.  Will the Social Security check be sent?  What will Gramma do?  Scaring people.  And the "crisis" will again blow over.



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Thu, Sep 26, 2013 08:51

Quoting Dakota35:

Million, Billion, Trillion, Quadrillion, Quintillion, Sextillion, Septillion...then Obama is out of the WhiteHouse.


Yay!  I think we should call a quadrillion a "drillion."  It works better with million, billion, trillion. When do we get to a zillion?



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Dakota35
Available only
to logged in members

total posts: 1255
Posted on Thu, Sep 26, 2013 07:59

Quoting MillionDollarBab:

What comes after a trillion?



Million, Billion, Trillion, Quadrillion, Quintillion, Sextillion, Septillion...then Obama is out of the WhiteHouse.



Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Tue, Sep 24, 2013 19:55

What comes after a trillion?



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Dakota35
Available only
to logged in members

total posts: 1255
Posted on Tue, Sep 24, 2013 15:15

Quoting Pedestrian2000:

The problem is bipartisan I will agree but the current political/economic threat is too risky to discuss. We have fiscal problems but the debt ceiling is far too risky a venture to use as a blunt instrument. 

For example...let's say the repubs win the white house in 2016. Unless they have dicovered a new math the following Sept. the debt ceiling will need to be raised. Do the dems hold it hostage to a tax increase ?



Spending cuts and a honest budget.  When your hand is in a lions mouth you must pull it out slowly and gently.  Spending should have never gotten to this point.  I blame both Republicans and Democrats.  Bush is guilty and Obama is even more guilty.  It's a pay now or pay more later.  We already know that congress will push everything as far down the road as possible.  It will explode at some point and in some form.  Everything is attached so one explosion will create a chain reaction.



Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Mon, Sep 23, 2013 08:00

Quoting Pedestrian2000:

The problem is bipartisan I will agree but the current political/economic threat is too risky to discuss. We have fiscal problems but the debt ceiling is far too risky a venture to use as a blunt instrument. 

For example...let's say the repubs win the white house in 2016. Unless they have dicovered a new math the following Sept. the debt ceiling will need to be raised. Do the dems hold it hostage to a tax increase ?



Well, long ago, I remember that President Reagan voted for a tax increase.  Maybe more than one.  One of my dem friends was hooting and hollering about how taxes had increased under Reagan. 

I said, "But, Reagan had a democratic Congress!  They were the ones who voted in the tax bills that were put before him.  That makes it Reagan's fault?"  

It reminds me of another friend whose wife divorced him.  Every time someone brought up the subject, they would say that he had left his wife.  "But she divorced him!"  "Oh, well, she had to..."  "Why, because she needed the bulk of their assets in her bank account?"

Reading an old book by Carl Sandburg about President Lincoln, I was really surprised at how modern all Lincoln's political thoughts were.  All the current twists and turns.  I'm pretty sure the politicians sit up nights reading what politicians of old did.  "His wife is a thesbian!" claimed one candidate of the other.  

It's just hard to believe how insane allowing our leaders to handle money has turned out.  I don't see sanity returning soon.  When called to task, there will be finger pointing, some of it exotic.



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Pedestrian2000
Available only
to logged in members

total posts: 10
Posted on Sun, Sep 22, 2013 23:37

Quoting MillionDollarBab:

Dak, 

We need a debt ceiling, but it seems like we have the pretense of a debt ceiling, not really a debt ceiling. We have a political fottball that gets tossed around sometimes.



The problem is bipartisan I will agree but the current political/economic threat is too risky to discuss. We have fiscal problems but the debt ceiling is far too risky a venture to use as a blunt instrument. 

For example...let's say the repubs win the white house in 2016. Unless they have dicovered a new math the following Sept. the debt ceiling will need to be raised. Do the dems hold it hostage to a tax increase ?



Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Sun, Sep 22, 2013 16:04

Dak, 

We need a debt ceiling, but it seems like we have the pretense of a debt ceiling, not really a debt ceiling. We have a political fottball that gets tossed around sometimes.



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Dakota35
Available only
to logged in members

total posts: 1255
Posted on Sun, Sep 22, 2013 14:49

Quoting Pedestrian2000:

The federal debt ceiling is our oft. repeated exercise in self-deception. "Why do you even have a debt ceiling, you never stick to it." James Buckley (federal judge and former sen. C-NY) That's right blogroids...the only senator ever elected (maybe the only elected person) from the Conservative party.

That this fight reveals what seems to be a newly engrained hynocrisy of the right, seems also to either reveal some very short memories where the real truth is, or...the right doesn't really care.

If they had cared, they wouldn't have almost deliberately added $6 trillion in debt from a projected $5 trillion surplus over the same time period...2000-2008.

 



We have a debt ceiling because we need one. (I understand why Buckley asked the question)  We also need people in gov. responsible enough to use it.  It's like a NewYears resolution for exercise..."I'll get started tomorrow", but when does tomorrow start?  By not following the rules and the debt ceiling then we create more pain down the road.  With each raise we up the future pain level.  Even if it only comes in the form of inflation it will be painful.  Most painful for those that have the least.

 

There is NO surplus.  With each cut the new budget ups the amount needed to counter-act the cut.  It's all smoke and mirrors, a shell game.  A game of musical chairs where everyone tries to guess when the music will stop.

 

How can the US government be run in a way that totally disregards the rules of responsible business?  If you ran your personal debt or your business debt the way that the US gov. runs,then you'd be bankrupt.  So essentially the US gov. is bankrupt.  But with the ability to print and manipulate money, it stays solvent.  But what if that ability is taken away?  China has already publicly stated that it wants the dollar removed as the world's currency.  It is not; will it happen, it is;when will it happen.  History of other world currencies, tells the story.



Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Sun, Sep 22, 2013 10:36

Quoting Pedestrian2000:

The federal debt ceiling is our oft. repeated exercise in self-deception. "Why do you even have a debt ceiling, you never stick to it." James Buckley (federal judge and former sen. C-NY) That's right blogroids...the only senator ever elected (maybe the only elected person) from the Conservative party.

That this fight reveals what seems to be a newly engrained hynocrisy of the right, seems also to either reveal some very short memories where the real truth is, or...the right doesn't really care.

If they had cared, they wouldn't have almost deliberately added $6 trillion in debt from a projected $5 trillion surplus over the same time period...2000-2008.

 



Hi Pedestrian, 

Why do we have a debt ceiling?  I sure don't know.  It serves no purpose.  Blogroid.  That's a new one on me.  I've never been called that before.  That sounds accurate.  



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Pedestrian2000
Available only
to logged in members

total posts: 10
Posted on Sun, Sep 22, 2013 08:57

The federal debt ceiling is our oft. repeated exercise in self-deception. "Why do you even have a debt ceiling, you never stick to it." James Buckley (federal judge and former sen. C-NY) That's right blogroids...the only senator ever elected (maybe the only elected person) from the Conservative party.

That this fight reveals what seems to be a newly engrained hynocrisy of the right, seems also to either reveal some very short memories where the real truth is, or...the right doesn't really care.

If they had cared, they wouldn't have almost deliberately added $6 trillion in debt from a projected $5 trillion surplus over the same time period...2000-2008.

 



Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Dakota35
Available only
to logged in members

total posts: 1255
Posted on Sat, Sep 21, 2013 22:37

Quoting MillionDollarBab:

Hi Dak, 

 

Ahhh...I like your ideas about back to the farm.  Itls like music. 

 

2 Chronicles. 7:14

 

"If my people which are called by my name, shall humble themselves, and pray, and seek my face,  and turn from their wicked ways; then will I hear from heaven, and willforgive their sin, and will heal their land."  

 

We could be back on track tomorrow if we did that, and maybe we will.  

 

 

 

 

​ 

 

 

 



Very nice Bab, very nice indeed.  And perhaps the land doesn't only mean the earth or a country but also the heart and soul of man.



Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Sat, Sep 21, 2013 09:39

Hi Dak, 

 

Ahhh...I like your ideas about back to the farm.  Itls like music. 

 

2 Chronicles. 7:14

 

"If my people which are called by my name, shall humble themselves, and pray, and seek my face,  and turn from their wicked ways; then will I hear from heaven, and willforgive their sin, and will heal their land."  

 

We could be back on track tomorrow if we did that, and maybe we will.  

 

 

 

 

 

 

 

 



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Dakota35
Available only
to logged in members

total posts: 1255
Posted on Sat, Sep 21, 2013 02:09

Quoting MillionDollarBab:

Hi Curious,  

You may be on the right track.  

I actually feel there could be a turn of events, a good one, that would put our whole country on better footing, maybe not far off.  

For example, the US really has massive amounts of public land.  That could be put to use instead of used for no man's land.  It could be developed all sorts of ways.  I think oil and gas will help us, too.  



What would help is for Americans to become educated on the issues and not bias out of greed.  Then for a extremely large group to go to Washington and physically remove ALL the politicians.  Replacing them with people that give a damn about this country.  NG and Oil is worthless if it sits in the ground due to regulations.  Americans have lost their way, their pride in whom they are, their moral ground, their honesty, their ethics.  The future just might humble the US and the world.  If everything falls apart tomorrow, I'd be just fine.  I'd be mad as hell because I've sacrificed and saved, so to see my saving disappear would be rather traumatic.  But really, I think my life would be less stressful.  Back to the farm life.  Milking a cow, a few chickens, plowing the field and planting.  Sitting on the porch shelling peas talking about nothing and laughing about it.  Funny how having less sometimes is having more.



Reply / add comments   Quote   Report abuse    1 up Bookmark and Share
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Fri, Sep 20, 2013 07:14

Hi Curious,  

You may be on the right track.  

I actually feel there could be a turn of events, a good one, that would put our whole country on better footing, maybe not far off.  

For example, the US really has massive amounts of public land.  That could be put to use instead of used for no man's land.  It could be developed all sorts of ways.  I think oil and gas will help us, too.  



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Fri, Sep 20, 2013 07:08

Ha ha.  The goose populations may decrease significantly around here anyway.  

I do actually have a plan.  Sprouts.  Sprouts?  Yes, during WWII the government tried to educate the public on growing sprouts in the hope of averting famine in the event of a disruption of the food supply.  Seeds are good because they can be stored and very nutritious when sprouted.  Seeds don't take up a whole lot of room either.  Then some things like powdered eggs and milk, and oil, and a few other items, and well, it's something.  



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Dakota35
Available only
to logged in members

total posts: 1255
Posted on Thu, Sep 19, 2013 18:52

Quoting MillionDollarBab:

Hi Dak

Well, I've heard about shorting.  I even see that I'm allowed to short, but that would only happen if I pushed the wrong buttons by accident, which I've done a few times.  I suppose I have placed what some call risky trades, but I'm not familiar enough with the world of shorting to go there.  

I recently placed stop loss orders and also bought puts on the positions I was worried about.  But usually puts don't seem to do anything for me but cost money.  I have a lot better feel for calls. 

As far as the casino, exactly.  I'm in the casino.  Flying blind a lot too.  However, I don't go to the casinos any more because I just felt God didn't like it.  

Full service brokers?  Yeah, very, very bad.  Every single thing that has been said to me by a full service broker has been exactly what not to do.  Coincidence??  I think not.  

What to do?  I just do my best guess.  I don't have to always be right.  And mostly I just buy long stock positions, usually with a big dividend.  Gold?  I agree.  An insurance policy.  What do you think of silver?  I keep hearing it's not really a precious metal.  But then I think about all the uses for silver in technology.  I'm not sure about silver either way. It seems like it would be a hassle to own much of it.

Now, this is how I think the whole inflation thing could be solved.  Go back to gold and silver coins, and paper money backed by them.  Or just the coins.  Some have said to me, "Oh, gold and silver coins would be too heavy to carry around!"  Oh, really?  $10,000 in gold coins would weigh less than a pound.  And why do you need to carry that much around?  

I think China would prefer that we not print worthless money, and it used to concern me.  But then, that gives them a stake in trying to keep us from going under.  We're not the only jokers on the planet.  If we go down, the whole world house of cards goes down.  How will we avoid hyperinflations?  I suppose that's next.  But then, owning assets like stock seems to me like the most likely way to keep up with inflation, even hyperinflation. 



Bab, you can buy SLV or GLD if you want to play silver or gold.  I look at silver as more of a industrial metal and a poor mans gold.  It def. has more ind. uses than gold.  So what do I think.  I think long term they are both a winner...as your hyper-inflation thesis is probably correct.  Our gov. says inflation is dead at this time...do you believe them?  If you are a long term investor then wait until a pull back.  We should see a big pull back when the Fed starts cutting back on pumping.  Gold was once a safe haven investment, a flight to equality...but that has changed.  People are trading gold for profit, that is part of what is causing the gold market to fluctuate.  People getting in and out, same as stocks.  This once was not the case.  So we will likely in the future see a pull back in the metals with the tapering of QE.  So the metals go up for now, then down with tapering, then ultimately back up with your hyper-inflation thesis.

 

Stocks and hyper-inflation is a interesting question.  And I'm not sure I have a good answer.  It is possible for our economy to be dead and still have hyper-inflation in sectors.  Look at how much money is floating around now and interest rates levels. You'd think our economy would be on fire.  Then you have corporations hoarding money because they are unsure of the future. Government welfare has skyrocketed.  Weak dollar policy with the printing and QE pumping.  There are so darn many variables that it's difficult for one to wrap their head around and understand the future.  The market is sky high at this time, it's like musical chairs.  Everyone knows sooner or later the music will stop.  We are all just trying to guess when.  I'm not a buyer of anything at this level.  I have been looking at a UVXY and TVIX but those are hugely risky and market timing is very difficult.  And don't dare invest in either unless you understand them completely...they are seriously risky.

 

So, I guess it's a good idea to realize that all the money you've worked for could some day be worth much less or worthless.  If that happened can you survive and how well.  I'm a farm boy so I would feel it, but my life would still be fine.  But what about someone living in a NY apartment from paycheck to paycheck?  Just something to think about.

 

I know you'd be fine also, but I have a feeling the goose population would decrease significantly. :)



Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Curious2078
Available only
to logged in members

total posts: 2547
Posted on Thu, Sep 19, 2013 16:50

Quoting MillionDollarBab:

Hi Dak, 

Well, there is a lot that I don't understand, but I have seen political figures manipulate the market, the money supply, the banks.  I used to own GM.  Where did that go?  Poof.  I'm not quite sure of my position on the food chain.  It doesn't seem to be very high.  Thank you for your concern.



After reading everything MDB and Dakota have written here, I've concluded that I am about as low on the food chain as a caterpillar crawling across the road and as likely to get run over by a car before I reach other side as I am to get eaten by a sharp-eyed bird. 

 

I inclined now to think it's time to dig in--into the ground while it's still warm and soft enough to dig into--and hold up there, hybernating until spring.  Which spring is the question.  The real spring that comes around in May or so?  Or the spring that will occur when a true Constitutionalist comes into power?  That could take more years than this "caterpillar" has.

 

LMAO so I don't cry.



Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
MillionDollarBab
Available only
to logged in members

total posts: 134
Posted on Thu, Sep 19, 2013 15:26

Hi Dak

 

Well, I've heard about shorting.  I even see that I'm allowed to short, but that would only happen if I pushed the wrong buttons by accident, which I've done a few times.  I suppose I have placed what some call risky trades, but I'm not familiar enough with the world of shorting to go there.  

 

I recently placed stop loss orders and also bought puts on the positions I was worried about.  But usually puts don't seem to do anything for me but cost money.  I have a lot better feel for calls. 

 

As far as the casino, exactly.  I'm in the casino.  Flying blind a lot too.  However, I don't go to the casinos any more because I just felt God didn't like it.  

 

Full service brokers?  Yeah, very, very bad.  Every single thing that has been said to me by a full service broker has been exactly what not to do.  Coincidence??  I think not.  

 

What to do?  I just do my best guess.  I don't have to always be right.  And mostly I just buy long stock positions, usually with a big dividend.  Gold?  I agree.  An insurance policy.  What do you think of silver?  I keep hearing it's not really a precious metal.  But then I think about all the uses for silver in technology.  I'm not sure about silver either way. It seems like it would be a hassle to own much of it.

 

Now, this is how I think the whole inflation thing could be solved.  Go back to gold and silver coins, and paper money backed by them.  Or just the coins.  Some have said to me, "Oh, gold and silver coins would be too heavy to carry around!"  Oh, really?  $10,000 in gold coins would weigh less than a pound.  And why do you need to carry that much around?  

 

I think China would prefer that we not print worthless money, and it used to concern me.  But then, that gives them a stake in trying to keep us from going under.  We're not the only jokers on the planet.  If we go down, the whole world house of cards goes down.  How will we avoid hyperinflations?  I suppose that's next.  But then, owning assets like stock seems to me like the most likely way to keep up with inflation, even hyperinflation. 

 

PS I think inflation has been the plan for Uncle Sam to pay his bills.  I really don't think most people will ever catch on.  The boob tube didn't sayt that so it isn't so!



Bab : )

Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Dakota35
Available only
to logged in members

total posts: 1255
Posted on Thu, Sep 19, 2013 00:41

Quoting MillionDollarBab:

Hi Dak, 

Well, there is a lot that I don't understand, but I have seen political figures manipulate the market, the money supply, the banks.  I used to own GM.  Where did that go?  Poof.  I'm not quite sure of my position on the food chain.  It doesn't seem to be very high.  Thank you for your concern.



LOL, so you are like me...pretty low on the food chain.  Well, the real game is on WallStreet.  These guys are greedy as hell and are out to slowly (or quickly) steal your hard earned money.  I don't think anyone should ever use a full service broker.  You once "owned GM", I'll tell you where it went...it went into the pockets of those that had more info than yourself...they took your money.  I'd explain how, but there are so many ways they did it.  I believe you asked how people make money when the market goes down.  It's called shorting the market.  Just as you can go long a stock, you can also go short.  Maybe this is something you are already aware of???  You buy (long) a stock with the belief that it will rise and you can sell at a higher price.  You sell (short) a stock with the belief that it will go down and you can buy back at a cheaper price replacing the stock that you borrowed to sell.  It's that simple. 

 

Now, let me explain how WallStreet works.  It's just like the food chain.  If you are well connected then you get insider info.  You say, this is illegal..??  Well, it is for some and for some (Congress and aids) it is not.  Why because they passed a law saying it wasn't.  And it is illegal to J-walk or litter but people do it and they only care when they get caught.  Awhile back Gold was up around 1,700oz.  The Fed (Federal Reserve) had a meeting, in the meeting they had info that someone (probably a country maybe Cyprus) would be liquidating a huge gold position causing a large drop in the price of Gold.  Well guess what...that info just happened to get leaked to some very large trading firms and they had time to liquidate and adjust their gold position before anyone else.  

 

It's all a game, and until you understand how the game works, then it's like going to a casino.  They'll let you win some but ultimately they are going to try to take your money.

 

People acted so surprised that the Fed didn't taper.  No way that some didn't expect it.  I can name you all the reason why I knew the Fed wouldn't taper.  The debt ceiling is one and the leaving of helicopter Ben another.  Why would Ben care to create market havoc when he only has a few months left on the job.  Let some other SOB deal with tapering and the eventual  liquidation of a trillion dollars worth of securities.  And what side do you want to be on when those securities are liquidated?  Now as you can see; Gold went up today.  This is simply because the dollar is weakened with ever new dollar printed.  Weak dollar equals higher commodity prices...and a almost guaranty of future inflation.  Bottom line is that it's a real mess.  WallStreet knows it, Washington knows it, but they are going to play the game until there is no game left to play. 

 

I purchased gold at under $300oz years ago.  It was clear to me what was happening.  Nothing has changed and in fact things have become much worse.  I'm a holder of gold not so much as a investment but as a safety net if the American dollar goes the way of the Zimbabwean dollar.  The only thing that has kept this from happening is that other world countries also have their printing press running full steam.  It truly is a contest of which country can weaken their currency the most.  All the time, China is getting angry at watching it's investment in America become worthless with the printing of dollars.  Do you think China will keep buying American debt?  No?  Then who will buy?  Wait, the FED can print money and buy America's debt.  Will that work?  For awhile until everyone understands the illusion/trick.  And then we all pay, even the wealthy...just not as much as the poor.

 

Obama has done more for the wealthy than any President in history.  Disagree?  Who benefits the most from the financial markets?  The wealthy!  Most average Joe's and Jane's just have a small amount in the markets, their benefit is minimal.  But the wealthy have huge amounts in the markets.  Thanks to Obama and his FED puppets, the rich have become richer and the poor have become poorer..pump, pump, pump, bubble, wealthy out of market, POP!.  And the middle class has moved down.  In fact, I'd say the middle class doesn't really exist any longer. 

 

So Bab, I just scratched the surface.  It's a real mess and until you've studied it ever day for over 20 years, it's difficult to get a grasp of how everything works.  And even after all those years I still find myself surprised at times.  I believe what surprises me the most is how greedy people can really be.  But I know the direction of our future if things do not change.   Does anyone remember Greece or have we already forgotten?

 

Good luck to you Bab



Reply / add comments   Quote   Report abuse    0 up Bookmark and Share
Follow - Email me when people comment